Just4uLoan.com Loans,Home Loan,Letter of Credit,Bank Guarantee,Term Loan,loan
==About Us
Excerpted from the website:
- Just4u Loans is an endeavor to cater to the finance requirements of the customers. At just4u Loans we strive to partner individuals and businesses by providing class of financial services. Our array of services includes loan management, debt management, capital formation, business restructuring process and all over financial portfolio.
Letter of Credit:
A Letter of credit is an instrument or a letter of comfort issued by the Buyer’s bank on behalf of buyer for the benefit of the seller. This letter guarantees the payment to the seller so that the seller can manufacture and supply the goods or provide the services to the buyer without any inhibitions. The seller has to ensure that the all the terms and conditions of the L/C is strictly followed. The seller presents the L/C and raises money from his bank to meet the working capital requirements viz. purchase of raw materials, payment of wages, manufacturing expenses etc. After manufacture, the goods (as per specifications mentioned in the L/C)are shipped to the destination as required by the buyer. The shipping documents along with all the other documents are presented by the seller to his banker and the amount of pre shipment loan/facility is settled and the balance is realized by the seller.
This instrument or method is often used in Selling, Buying or Service Providing contracts across countries and / or where both the parties have no established business relationships.
http://www.just4uloan.com/business/letter_of_credit.htm
Bank Gurantee
Unlike the Letter of Credit, the Bank Guarantee is comfort to the buyer or seller for recovering the losses or damages, if the CLIENT, on whose behalf the guarantee is issued, fails to complete or conform to the terms of agreement. By issuing this guarantee, the issuing bank is assuring payment of the certain amount of money (as specified in the bank guarantee) to the beneficiary in case of non-performance of a certain contract according to the terms and conditions contained in the same. A bank guarantee might be revoked by the seller (beneficiary) when the buyer fails to pay the seller for the goods supplied. In such a situation, the bank pays the beneficiary to the extent of the amount of Bank Guarantee. Similarly, on the other side if the Seller fails to deliver the goods or complete the terms of agreement, the bank guarantee may be cancelled by the buyer.
This instrument or method is often used in Selling, Buying or Service Providing contracts across countries and / or where both the parties have no established business relationships.
http://www.just4uloan.com/business/non_fund_limits/bank_gurantee.htm
Cash Credit facility
Cash Credit is a facility to withdraw the amount from the business account even though the account may not have enough credit balance. The limit of the amount that can be withdrawn is sanctioned by the bank based on the business cycle of the client and the working capital gap and the drawing power of the client. This drawing power is determined, based on the stock and book debts statements submitted by the borrower at monthly intervals against the security by hypothecating of stock of commodities and/ or book debts.
The excess withdrawal of cash is made generally on demand from the customer and the customer has to pay interest on the excess amount he/she has withdrawn. The Cash Credit facility is quite useful to those businesses where cash payment like wages, transportation, cash purchases are to be made and the receivables are not realized in time.
http://www.just4uloan.com/business/cash_credit.htm
Term Loan
Term Loan is a loan borrowed for fixed amount over the fixed period of repayment and floating rate of interest. The borrower is offered a predefined schedule of repayment by the lending institution comprising of principal amount and interest thereon. Term Loan is secured by a collateral security. Term Loan facilitates the borrower to raise a stipulated amount one time and plan the business expenditure or investment or purchases on his or her own. Term Loan is normally preferred by small and medium scale businesses to meet the needs of working capital or to buy assets or infrastructure which is required to run the business on day to day basis. It may include purchase of machinery or buying an office or workshop premises The maturity period or term is between 1 – 10 years.
The term Loan can be availed to
Purchase of Fixed Assets: The term loan can be used to purchase fixed assets like premises, plant & machinery etc. The usage or performance of assets increases the business performance and hence the profit and makes the repayment of the loan easier. Even the term loan is settled the assets procured continue the productivity as asset life span is certainly longer than the term loan span. If a premises is purchased then the value of premises is always appreciated and in that case the business leverages higher value of premises which further can be used to raise funds for business expansion or diversification.
Switching of Higher Interest Loans: Many a time’s business owners opt to raise business loans at higher rate of interest. Such loans are processes and sanctioned faster but result in heavy burden interest. This interest payment becomes a fixed monthly expenses and starts leaking the profit. To arrest the growing rate of interest and penalties the higher interest loan can be switched to lower rate of interest loans or term loans. This way a borrower reduces the growing burden of interest on business loan and can save a considerable amount of money. It also benefits in maintaining the credit rating as the borrower closes one loan liability and opens another in form of term loan with lower rate of interest and easier repayment conditions.
Mortgage Term Loan A Term Loan can be availed by mortgaging a kind of security like home, office premises etc. This type of loan is borrowed for longer period of time that is 10, 15 or 20 years. The repayment of the principal amount and interest may be fixed in nature or it may vary over the course of repayment. The borrower may avail the revised rate of interest later and may be benefited by saving in interest.
http://www.just4uloan.com/business/term_loan.htm
Lease Rent Discounting
Lease Rent Discount is another method to obtain finance from bank or other lending institutes. This loan consideration is between the borrower who owns the premises, the tenant who has rented the said premises or taken on lease and the bank or financial institute. The rent is considered as fixed income over a stipulated time ie. Lease or rent period or tenure. The agreement is between the borrower and lender and the major term of repayment is the rent is directly deposited with the lender and not with the borrower. The Borrower is sanctioned a loan based upon the rent to be collected over the period of lease.
http://www.just4uloan.com/business/lease_rent.htm
Bill Discount
Bill Discounting is a process where the financial institution gets the Bill of Exchange (Cheque / PO /DD etc.) before it's maturity date and below its par value. Hence the amount or cash realized may vary depending upon the number of days until maturity and the risk involved.
Discounting the bill of exchange is practiced to get the same immediately encashed before the maturity date. The liability in case of dishonor of the bill remains with the person in whose favor the bill is generated.
http://www.just4uloan.com/business/bill_discount.htm
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